Real estate companies predict soaring rents and house prices

December 28, 2015 by Brendan

House Prices

According to a recent report produced by two of the main real estate organisations, rents are likely to increase by 25% and house prices by 50% in the UK, by the year 2025.

The study was conducted by the National Association of Estate Agents (NAEA) and the Association of Residential Letting Agents (ARLA), and it indicated that more people will rent their home, while the number of people buying a property will drop. The report also refers to ‘a broken housing market’ which will make it harder for people to buy a home during the next 10 years, with drastic action required to solve the problem.

The ARLA and NAEA Housing 2025 report states that the average property price of £280,000 is likely to increase to £419,000 by 2025. For London dwellers, the news is even bleaker, as the report forecasts the average house price will soar to £931,000 during the next decade. Rents are also expected to increase, with the average weekly rent in the UK rising to £171, while London will again be worse off as weekly rents are predicted to reach £314.

The report predicts that home ownership will fall, with only 55% of people owning a property during the next decade. This will increase the demand for rental homes, pushing up the house prices. The managing director of ARLA, David Cox, states that the new tax changes for buy-to-let investors will increase rents, which are already out of reach for many.

Mortgage advisers undertake CeMAP training in Leeds and other cities so that they can help people who are looking for the most suitable mortgage, in a financial climate which is ever changing.